Scotland
What assessment he has made of the potential impact of not issuing new North sea oil and gas licences on levels of economic growth in Scotland.
The Secretary of State was asked—
This is the first opportunity I have had to apologise to the House for using an inaccurate figure on previous occasions. I had told the House that the Scottish Government had received a record settlement of £47.7 billion this year, but Treasury figures show that the block grant for this year is actually £50 billion. That is the highest ever settlement in the history of devolution, with bells on. That £50 billion is more money for schools, hospitals, policing and housing; it is an end to austerity. That is the Barnett formula in action—the formula that both the SNP and Reform have announced this week that they want to scrap.
Oil and gas will remain a crucial component of our energy mix for decades to come. Our workforce is the most talented in the world, and we are committed to ensuring its future. We have consulted on support for the energy transition in the North sea, including on these issues, and the Secretary of State for Energy Security and Net Zero will respond to that consultation shortly. Economic growth in the UK in the first quarter of the year beat all forecasts, reaching 0.7%—the highest in the G7. Growth in Scotland is more sluggish than in the rest of the UK; if Scotland’s economy had grown at even the low rate at which it grew under the Tories, it would be £10 billion larger. That makes it even more astonishing that the Opposition parties oppose the EU, US and India trade deals.
Ministers across various Departments have repeatedly said that oil and gas is here to stay for many years. Issuing new North sea oil and gas licences would support tens of thousands of jobs, return millions in tax revenue to the Treasury and help to grow the Scottish economy. Why are the Government refusing to issue any new licences?
A consultation on Rosebank and Jackdaw is concluding, and the Secretary of State for Energy Security and Net Zero will report on it in due course. There is also the North sea transition consultation, which has concluded, as I mentioned earlier, and which will take into account all those issues. It will be published in due course.
Labour’s windfall tax on North sea energy profits is designed to make us less reliant on people like Vladimir Putin. When I was campaigning in Hamilton last week, voters asked me why the SNP, the Tories and Reform were so against our windfall tax. I could not explain. Can the Secretary of State?
I am grateful to my hon. Friend for the question. What astonishes me more than anything is that the shadow Secretary of State for Scotland was the Energy Minister when the energy profits levy was brought in.
indicated dissent.
The hon. Gentleman shakes his head, but he was the Energy Minister. Indeed, as my hon. Friend the Member for Edinburgh South West (Dr Arthur) may remember, the leader of the SNP in Westminster, the right hon. Member for Aberdeen South (Stephen Flynn), did not support the levy, then did, then did not, and then put in the SNP’s manifesto that it would be extended to every single Scottish industry. I am at a loss, as is my hon. Friend.
We come to the shadow Secretary of State.
I start by congratulating the famous Aberdeen football club—the only team in red I like to see winning—and the manager Jimmy Thelin, the players and all the coaching staff for winning their eighth Scottish cup a week and a half ago, qualifying for the Europa league in the process. The pride and jubilation on the streets of Aberdeen last Sunday show just how much the club means to the north east of Scotland. Even more important to the north east than Aberdeen football club is the oil and gas industry. What does the Secretary of State make of the report published by Robert Gordon University this week that warns of 400 job losses every two weeks in the North sea?
I join the shadow Secretary of State in congratulating—through gritted teeth—Aberdeen on winning the Scottish cup. Speaking as a big Hearts fan, it is always nice to see the smaller clubs doing well in national competitions. [Interruption.] I do not know whether I have lost or won the House there, Mr Speaker.
We have this discussion across the Dispatch Box a lot during questions. We are aiming for clean energy by 2030, and setting up GB Energy in Aberdeen—something that the shadow Secretary of State voted against, of course—to ensure a transition. We have a declining and mature base, and we need to create the jobs of the future and the future industries in Scotland. He should support that, rather than voting against it. The EPL was brought in by his Government.
To be absolutely clear, there is no transition under way. It is not the Conservative party saying that; it is the Robert Gordon University Energy Transition Institute. These mythical jobs in renewable energy simply do not exist yet. There is a slowdown in offshore wind deployment and a steep decline in offshore oil and gas activity as a direct result of Labour’s ideological policies—400 job losses every two weeks, a steep decline in skilled roles, nowhere for supply chain jobs to go but overseas, and a decline in the workforce of 25%. Why? Because of massive investor uncertainty due to negative sentiment around oil and gas as a result of the ban on licences and the EPL extension. When will the Secretary of State and the Scottish Labour party grow a backbone, stand up to the Secretary of State for Energy Security and Net Zero, and stand up for Scotland and Scottish workers?
I do not know whether the hon. Member agrees with net zero anymore—certainly, his party leader does not seem to believe in it—but that is where the jobs are for the future. There is a declining base in the North sea. Companies are making that transition already, and we need to ensure pace; that is the big issue. We need regulatory change and investment, and GB Energy is there to ensure that. The National Wealth Fund is making investments as well. We have seen £600 million invested in Scottish Power’s infrastructure. Things are starting to happen, but we need cross party support on this.
The National Wealth Fund has made its first Scottish investment in the Glasgow city region, which is one of four areas across the UK selected for a strategic partnership with the fund to unlock private investment opportunities. The Secretary of State meets the Deputy First Minister regularly to discuss economic growth, which is this Government’s No.1 priority.
Does the Minister agree that in recent years, we have witnessed the benefits of further devolving power to cities and city regions, which have created tailored policies to better serve communities? In Holyrood, however, devolution appears to have stalled, and there is little appetite to pass power down to our cities, towns and communities. Does she agree that the recent Glasgow city region devolution proposal makes a compelling case for further devolution to that city region?
It does, but I am afraid that the SNP seems determined to hoard powers and funding, rather than passing them to communities. There is no better example of that than the Labour run council in South Lanarkshire proposing £8 million for Hamilton town centre, only for the SNP to vote against that. That is why, tomorrow, voters in Hamilton, Larkhall and Stonehouse should back a real local champion, Labour’s Davy Russell.
I wish to thank veterans for their service, and their families for the sacrifices that enabled it. As it is Volunteers Week, may I place on record my thanks and those of the whole House to the volunteers who do so much for our military charities? I welcome the announcement of the new programme, Valour, which is giving veterans across the UK easier access to essential care and support. The Minister for Veterans and People is leading work across the UK Government to ensure that veterans and their families have sufficient access to health services, housing, employment and other forms of support.
I regularly speak to veterans in Bishop Auckland and, although they mostly reflect positively on their military service, they often mention the need to improve homes for forces families. Will the Minister welcome this week’s announcement that Labour will improve 3,000 forces family homes in Scotland as part of a £1.5 billion investment, and does the Minister agree that all those who serve our forces in this United Kingdom should have a home fit for a hero?
I am pleased to join my hon. Friend in welcoming the strategic defence review, which was launched by the Prime Minister in Scotland on Monday and included more than £400 million of investment in military accommodation in Scotland. I am sure that, like me, my hon. Friend will be appalled that the First Minister snubbed a confidential briefing on that strategic defence review to go campaigning, during a by election campaign, at a charity whose funding he had slashed.
A local charity in my area supports women veterans. Recently, it was supporting a woman who was rehomed in general purpose supported accommodation for veterans in Scotland. The accommodation was entirely unsuitable for her as a survivor of sexual violence, and it led to her being subjected to a further sexual assault by a man who was also housed there. Can the Minister assure me that her work with the Ministry of Defence will ensure appropriate support for women veterans?
First, I am truly sorry to hear about the experiences of my hon. Friend’s constituent. Support services and accommodation across the UK must reflect the needs of all our veterans, including women. That includes the provision of safe, suitable and appropriate housing. If she writes to me, I shall ask the Minister for Veterans and People to get in touch with her.
The previous Conservative Government had a dedicated Minister of State for veterans sitting at the Cabinet table, but that job was taken away by the new Administration. How are the interests of veterans in Scotland being raised in Cabinet under the new Government?
The Minister for Veterans and People is doing sterling work. His advocacy has helped to ensure that Labour will improve 3,000 forces family homes. We are making a £1.5 billion investment across the whole UK. I am sure that when the strategic defence review was launched, in Scotland and then in this Chamber, the hon. Member was full of admiration for what the Minister is doing for veterans and those who currently serve us with such distinction.
Scotland born veteran Betty Gallagher joined the Army when she was 17, but eight months later she was dishonourably discharged for what were referred to as “lesbian tendencies”. Today, Betty runs the thriving BourneOut LGBT hub in Eastbourne and founded Eastbourne Pride. Will the Minister thank Betty for her service to our country, and advise on how she and other veterans can seek justice for the discrimination that they were subjected to?
I am delighted to join the hon. Gentleman in thanking Betty for all her efforts. He will know that, in the review, work has been undertaken on justice for LGBT people in our armed forces, and we are pleased to commend that to the House.
I call the Liberal Democrat spokesperson.
I associate myself with the remarks of the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) about the success of Aberdeen football club. The strategic defence review makes it clear that housing must be a priority, and that the money from the sale of housing must be reinvested, but veterans continually come to me who have been discharged into homelessness. Can the Minister reassure us that we will ensure that houses that are sold or redeveloped are available to veterans’ families?
I am very pleased to offer the hon. Lady that reassurance.
I join colleagues in congratulating Aberdeen FC, despite the impact of their victory on my beloved Dundee United. I also congratulate Arbroath FC on securing the Scottish league one championship title. The Scottish Government have reinstated the winter fuel payment for up to 88,000 pension age veterans in Scotland, but the Prime Minister has said that it was right to slash the winter fuel payment. Was the Prime Minister right to slash it?
The hon. Member will be perfectly aware—as, indeed, everyone in the House will be—that questions about the winter fuel payment in Scotland are devolved to the Scottish Government. Decisions made in Scotland are the responsibility of the Scottish Government, but I am pleased to reiterate to the House what the Prime Minister and the Chancellor have said. This was a difficult decision, and now that we have a little more breathing space, we are very pleased to make changes to help more pensioners.
I see that we are not going to get a straight answer out of the Minister, just as the people in Hamilton did not get a straight answer out of Labour’s candidate. That will be why Labour is sinking without a trace. Let me put it this way: does the Minister think that the Prime Minister was right to slash the winter fuel payment for up to 1 million veterans across the UK?
When this Government took office, we inherited a £22 billion black hole, which required emergency action. We said at the time that our decision on the winter fuel payment was a difficult one that we did not want to make, and we are very pleased to be in a position to reconsider it.
Scotland’s universities are of course world class, but I am very concerned about the financial difficulties faced by several of them. As the hon. Lady will know, higher education is a devolved matter, and Scotland’s universities, their staff and their students all need a Scottish Government with a proper plan to turn this crisis around.
International students are hugely valuable, not just when it comes to sharing cultures and knowledge, but to our universities and local economies. In North East Fife in 2021-22, that value was estimated at £159 million. What discussions has the Minister had with the Scottish Government about the economic impact of the reforms relating to international students in the immigration White Paper? Can she update the House on whether an economic impact assessment has taken place?
We are in ongoing discussions with the Scottish Government and Scottish universities, but I want to be absolutely definitive about this, because there has been some confusion in the press. Education policy is devolved, and the international student levy will not apply in Scotland unless the Scottish Government decide to introduce it. I met Universities Scotland just this week and made that very clear, and I am pleased to do so again today.
The university sector is important for growing the Scottish economy, but so is tourism. Can the Minister enlighten me about the jet safari trips from Clacton to Scotland that have taken place, allowing former bankers to patronise the locals, miss the big picture and be back in England for a pint of warm beer by lunchtime?
I think I did hear something about the hon. Member for Clacton (Nigel Farage) getting lost in Hamilton this weekend, and sculking behind the bins before he was sent packing by the good people of South Lanarkshire. Of course, the only local candidate in that by election is Labour’s Davy Russell, who will stand up for his community against the division peddled by both the SNP and Reform.
The right hon. Gentleman will have heard me remind the House on a number of occasions that John Swinney said that education was the “defining mission” of his SNP Government, but earlier this year we got the news that standards of attainment in Scotland’s schools are declining across the board and, shamefully, outcomes for young working class kids are getting worse. The attainment gap is widening. The Scottish Government have failed a generation; they cannot be allowed a third decade in power to continue that damage. Scotland’s teachers, parents and pupils all deserve better standards in our schools.
What has caused the system, which was once the benchmark for all others, to become such a disappointment?
There is a simple answer to that question: the SNP Scottish Government.
When my right hon. Friend discusses with SNP Ministers, through announcements made this week, the huge employment opportunities that this Government have created for young people in Scotland, will he impress on them the urgent need to finally tackle the persistent—and in some areas widening—attainment gap faced by pupils from poorer backgrounds, not only in Fife but in South Lanarkshire? These concerns are often raised by residents of Hamilton, Larkhall and Stonehouse.
The House may not know that last year, 1,351 pupils left high school in Scotland without a single qualification to their name, and one in six Scots is not in education, employment or training. That is the legacy of the SNP Scottish Government. What have they done about jobs and growth? They are against the defence industry and against the trade deals with the EU, India and the US. They are against young Scots in Scotland.
Our recent trade deals with the United States, India and the EU will improve access to vital markets for businesses in both Scotland and Northern Ireland. These are deals with the most populous country in the world, the richest country in the world and our most important trading partner. I recognise the importance of economic co operation between Northern Ireland and Scotland. Indeed, earlier this week I met the hon. Member for South Antrim (Robin Swann) and a local business to discuss exactly this issue.
Will the Minister set up a meeting with the Secretary of State for Northern Ireland to consider creating a trade fair focusing on trade between Northern Ireland businesses and Scottish businesses? That would create networks, would possibly create jobs, and would be great for the economy in both Northern Ireland and Scotland. It would certainly go down well with businesses in North Down and right across the UK.
I would be delighted to see more trade between Scotland and Northern Ireland. I will happily meet colleagues in the Northern Ireland Office to explore that.
Scotland and Northern Ireland are set to benefit from the Government’s trio of trade deals. Does the Minister agree that it is astonishing that the SNP stands with the Tories and Reform against an EU trade deal that is good for Scotland, and that after almost 20 years in government, the SNP has no plan for Scotland? One in six Scots is on an NHS waiting list; Ayrshire ferries are late and are costing £1 billion; one in six Scots is not in education, employment or training; and the SNP has no plan for the defence of our Union.
I agree with my hon. Friend that it is astonishing that we see ranged on the Opposition Benches numerous people who have talked down the potential of Scotland’s exporters, and who have said that there is no benefit to be had from these deals for a Scottish business sector that is desperate to grow and export, and is delighted with the three trade deals, which will make such a difference to them.
I call the shadow Secretary of State.
For years, there has been under investment in Scotland’s roads. The A9, A96, A77 and A75 are all in dire need of upgrading or dualling; work on all of them has been delayed or even cancelled by the SNP. In the spirit of improving economic co operation between the nations of the UK, and specifically between Scotland and Northern Ireland, and given how vital the A77 and A75 are to individuals, businesses and hauliers, will the Minister seek the ringfencing of the Barnett consequentials that will arise as a result of this morning’s announcement by the Chancellor, so that the SNP must spend that money on improving roads in Scotland?
We are in conversation with all the relevant parties, but yes, we would like an increase in trade, and in the transport infrastructure that supports it.
As a former publican, I know that these are hard times for businesses on the high street. We are investing £200 million in our plans for neighbourhoods in Scotland, with £20 million worth of funding for towns including Irvine, Greenock, Kilmarnock, Coatbridge, Clydebank, Elgin, Dumfries, Arbroath, Peterhead and Kirkwall. Of course, it would help if the Scottish Government extended business rates relief to retail and leisure businesses, as has happened south of the border. Many businesses in Scotland are asking where that money went.
Does the Secretary of State agree that it was astonishing that the SNP voted against the £8 million to regenerate Hamilton town centre and that only Labour’s Davy Russell will stand up for local people, jobs and services?
I have brought glasses to see if I can find an ounce of credibility in the SNP’s candidate in Hamilton for voting against that £8 million. The SNP candidate is a councillor from Cambuslang who stood for election twice in Rutherglen, sought selection in Shettleston and then voted against £8 million for the Hamilton town centre before seeking selection there. In Scotland, we are allowed to elect councillors with a single transferable vote; she appears to be the SNP’s single transferable councillor.
A proud industrial heritage, a strong community spirit and an overwhelming feeling of being let down and under invested in by the previous Conservative Government unite towns in my constituency with those across Scotland, including those in Hamilton, Larkhall and Stonehouse. In Wales, Labour’s transforming towns programme has invested in Holywell in my constituency. Will the Secretary of State join me in calling on the SNP to U turn and finally back Labour’s plans to invest in Hamilton town centre?
What a wonderful representative my hon. Friend is for her constituency. I could not agree more. The SNP candidate is yet to explain to voters in Hamilton, Larkhall and Stonehouse why she voted against the much needed £8 million investment in Hamilton town centre. I hope she will explain before tomorrow’s vote. If she does not, everyone should back Labour’s Davy Russell.
I will tell the Secretary of State what is bad for town centres, and that is job losses. On this Government’s watch, Robert Gordon University has been forced to publish a report that outlines that there could be 400 job losses in the North sea every two weeks. That is a Grangemouth type shutdown every two weeks. How many jobs have to be lost in my constituency for his Government to act?
The leader of the SNP in this House voted against the setting up of Great British Energy in his constituency, which is creating jobs in Scotland. He is against the EU trade deal, he is against the US trade deal, he is against the India trade deal; he is bad for jobs and should go.
Towns and villages across north east Scotland, such as Aberdeen, and Inverurie, Kintore and Ellon in my constituency, will all need regenerating in future if the Secretary of State’s Government keep decimating the oil and gas sector. The best thing his Government can do for the north east of Scotland is allow new licences and cut the increase to the energy profits levy. Will he commit to that? Otherwise, more and more money will need to be put into north east Scotland to regenerate our towns in future.
This Government are putting money into Scottish towns to regenerate them. As we keep saying from this Dispatch Box, oil and gas will be with us for decades to come. The industry itself is making the transition, and we have to make sure that it happens, and happens for the benefit of workers in the north east and all over Scotland. I am not even sure, however, that it is a transition that the hon. Lady and the Conservative party now back.
Following the spring statement, it was confirmed that the block grant for Scotland this year was a record £50 billion. That was no thanks to the SNP and Reform, which both voted against that massive funding boost for Scotland and want to scrap the Barnett formula that delivered it. Despite that record funding, the SNP still has no plan to get waiting lists down, when one in six Scots are stuck on an NHS waiting list and the educational attainment gap is growing by the day.
Despite the record funding provided by the Labour Government, the SNP plans to downgrade the neonatal intensive care unit at university hospital Wishaw, which could force the families of sick babies to travel as far as Aberdeen for treatment and support. Does the Secretary of State agree that the SNP cut should be reversed?
As the father of an 18-week old daughter, I am absolutely horrified by those proposals and I know that they will be causing anxiety for families across Lanarkshire. That is why it is so disappointing to see the SNP candidate in the Hamilton by election back the plans to downgrade the Wishaw neonatal unit. The way to send a message to the SNP that that is unacceptable is to vote for Davy Russell tomorrow in the Hamilton, Larkhall and Stonehouse by election.
The Chancellor’s autumn Budget delivered the biggest settlement in the history of devolution for the Scottish Government—£50 billion. I want to see that cash reach the frontline services that have suffered years of cuts under the SNP. That record settlement is possible only because of the Barnett formula—something opposed not only by the Scottish nationalists, but by the hon. Member for Clacton (Nigel Farage), whose Reform circus was sent packing from Hamilton this week.
The largest ever devolution settlement—£50 billion—is great news for Scotland and its local authorities, but under the SNP there are 840,000 cases on NHS waiting lists. This affects people in my constituency in North Northumberland, many of whom use cross border healthcare and dental services, so does the Minister agree that the SNP needs to sort itself out and start delivering change to the NHS, as Labour is doing in England?
I could not agree more. In England, waiting lists have fallen since Labour came to office less than a year ago, while in Scotland they continue to rise, and we now see nearly one in six Scots waiting for treatment. John Swinney has, in total desperation, announced that the SNP Government’s fifth NHS recovery plan in less than four years, but the reality is that patients, staff and we all know that Scotland desperately needs a new direction.
Before we start Prime Minister’s questions, I would like to welcome to the Gallery the Speaker of Bahrain and his delegation: a big welcome to you.